Now Shell exits Downstream Africa

With the exception of South Africa, Shell has officially announced the sale of its downstream business in 21 countries in Africa.

 PetrolWorld first reported in the first week of January that Shell was reviewing its fuel business and downstream activities in 24 countries of Africa.  Today Shell Oil Products Africa has announced the sales of its downstream business as a going concern subject to successful negotiations, and any necessary regulatory and final company approvals.

It is understood by PetrolWorld that the  downstream business includes retail & commercial fuels including aviation and marine; lubricant business (except Egypt), LPG, and the bitumen business.  The countries affected are Algeria, Botswana, Burkino Faso, Cape Verde, Cote d’Ivoire, Egypt, Ghana, Guinea, Kenya, Madagascar, Mali, Mauritius & La Reunion, Morocco, Namibia, Senegal, Tanzania, Togo, Tunisia, and Uganda.

Commenting on the announcement, Xavier le Mintier, Executive Vice President, Shell Oil Products Africa, said: “This decision is part of our drive to refocus our global downstream footprint into fewer, larger markets. The businesses under review in Africa are profitable and professionally-run. They have strong positions in their respective markets and offer ample scope for growth to owners willing to invest in them. Early indications suggest there are a number of potential buyers interested in acquiring the businesses as going concerns and we will now enter into a round of negotiations, with a view to securing the optimum outcome for our shareholders, customers and staff.”

Adding his comments, Mark Williams, Shell’s Downstream Director, said: “The review is consistent with our strategy to concentrate our global downstream footprint and follows a number of similar reviews and divestments in other parts of the world.

“Shell’s program of downstream asset sales will continue through planned exits from 15 percent of our world-wide refining capacity and 35 percent of our current retail markets, which equates to about 5 percent of Shell-branded retail sites around the world.”

Source: PetrolWorld, Thursday, 1 April 2010